I had the privilege at SEMA this past November to teach a class on negotiating with insurers for collision repairers with my colleague, Sheryl Driggers. Autobody News was kind enough to run an article about that class.
A gentleman I know in this industry -- who has attended a similar class I taught in the past -- read the article, and contacted me to say he that while he’s implemented many of the strategies he’s heard from me over the years, he wanted to respectfully offer his own view on the topic of negotiating with insurers. I always welcome new perspectives, so I contacted Drew Plischke.
Plischke is the director of client/insurance reconciliation at Gold Coast Auto Body in Chicago, a company he’s been with for 20 years. In all, he’s spent nearly four decades in the industry, starting as a porter at a shop after leaving college, becoming a technician and then an estimator before taking management and leadership positions.
“In every role, I’ve focused on one central mission: ensuring that our customers feel supported, valued and guided through every aspect of the repair process,” Drew told me.
After we talked about his view of negotiating, I invited him to put his thoughts into writing. He did so, sharing why he believes “negotiating with insurers can be detrimental to collision repairers.” I decided to turn this month’s column over to him.
Drew wrote:
“After our shop severed our last DRP relationship with a major insurance carrier, everything changed. It was from that point on that I began to see the collision repair landscape shift in ways that fundamentally changed how repairers should approach negotiating with insurers. As the insurance industry has evolved, I’ve come to realize that while negotiating with insurers may have been a viable strategy in the past, it may no longer be the best solution for collision repairers today. In fact, in many cases, this kind of negotiation may be counterproductive.
“In the past, it may have seemed that insurers were partners in ensuring that vehicles were repaired safely and correctly. But the reality has always been that insurers have been focused primarily on controlling repair costs. While safety and quality should always be the top priority, it’s become clear that insurers’ efforts to cut costs have often come at the expense of these essential factors.
“Over time, we’ve seen a shift in the language and tactics used by insurance companies. Terms like ‘prevailing market rates’ and ‘industry standard’ have increasingly replaced concrete standards such as OEM repair procedures, position statements, and owner’s manual guidelines. Rather than relying on clear, evidence-based repair standards, insurers now often use ambiguous language to set limits on repair costs. Unfortunately, these terms can be used to justify reducing payments or even denying necessary repairs, which leaves repairers in a difficult position.
“I’ve seen this firsthand in our shop, especially since ending our DRP relationships. What used to be a more predictable process for dealing with insurance claims now often feels like a constant struggle. Insurers have increasingly relied on vague terminology like ‘usual and customary’ or ‘not being charged by others’ to justify reduced payment amounts, and that leaves us with limited leverage to negotiate a fair rate for the repairs needed.
“The challenge is not just the payment amounts but shifting expectations regarding the scope of work. Terms like ‘industry standard’ are so open to interpretation that it becomes nearly impossible to have a productive discussion about what is necessary to restore the vehicle safely and properly.
“It’s also important to remember that insurers aren’t just neutral parties in the repair process. They have a legal obligation to act in good faith on behalf of the policyholder. Insurance companies have fiduciary duties to their clients, which include ensuring that vehicles are repaired properly and safely, with payment made for the full scope of necessary repairs.
“However, as repairers have become more involved in negotiations with insurers over cost, this duty has been complicated. Instead of ensuring that repairs meet documented safety standards, insurers are increasingly focused on managing costs. This shift in focus can sometimes work against the best interests of the vehicle owner and the repair facility, putting safety at risk.
Advocating for the Vehicle Owner
“My role at our shop has always been to advocate for the vehicle owner, ensuring they receive the best possible repair according to OEM repair standards -- not to haggle with insurers over labor rates or discount procedures.
“As vehicles have become more complex, with advanced technology such as ADAS and safety features that require specialized knowledge, tools and certification, today’s repairs are not just about returning a car to its previous state; they’re about returning it safely, with every necessary procedure followed to ensure the vehicle’s integrity.
“In this environment, negotiating with insurers over the cost of repairs can be both inefficient and potentially unsafe. The focus should always be on ensuring that the vehicle is repaired correctly, not on what the insurer is willing to pay. Repairers should be empowered to work directly with the vehicle owner to ensure the proper repairs are made -- without being constrained by what the insurance company is willing to cover.
Focus on Quality Repairs, Not Negotiating Rates
“Rather than getting bogged down in negotiating with insurers, collision repairers need to shift our focus back to what really matters: providing high-quality, safe repairs for the vehicle owner.
“A simple solution is to begin directly billing the customer for the repairs we perform, while allowing the insurance company to settle the claim separately. This allows repairers to focus solely on the work at hand -- performing the repairs according to the highest safety standards -- without the distractions of insurers trying to limit the scope of work or delay payments.
“And here’s the critical part: This method works. It’s been successful for us over a large sample size of both first-party insureds and third-party claimants. By focusing on delivering the necessary repairs, providing clear documentation of what’s required, and directly billing the vehicle owner, we’ve been able to reduce the time spent fighting over arbitrary rates or unnecessary negotiations, and instead focus on the repair. This method of billing directly to the consumer has been a game changer for our shop, allowing us to maintain control over the repair process, prioritize safety, and continue to deliver high-quality work.
Time to Focus on What Matters
“I believe the time has come for the collision repair industry to focus on ensuring that vehicles are repaired correctly and safely, according to OEM standards, without being drawn into constant negotiations with insurers. We should not allow insurers to dictate the terms of repair decisions or payment through vague language that only serves to reduce costs, often at the expense of safety. We should advocate for what is necessary to restore the vehicle to its pre-accident condition and trust that the claims process between the policyholder and the insurance company will unfold as it should.
“It’s time we reclaim control over the repair process, prioritize the safety of the vehicles in our care, and ensure that all parties involved -- repairers, vehicle owners and insurers -- work together for the greater good.”
I want to thank Drew for taking the time to share his perspective so professionally and respectfully, and for allowing me to share it with you through my column this month.
Mike Anderson